Press release

Local Health Plans Respond to Governor Newsom’s May Revision of California’s 2020-2021 Budget Proposal

SACRAMENTO, CA — Today, Brianna Lierman, CEO of the Local Health Plans of California (LHPC), which represents 16 of the not-for-profit local health plans that serve more than 70 percent of Californians enrolled in Medi-Cal managed care, made the following statement in response to Governor Newsom’s May Revision of California’s 2020-2021 budget proposal:

“The threat of COVID-19 hasn’t passed and is only compounded by a likely surge in unemployed Californians turning to Medi-Cal and public services as their sole source of health care.

“While we recognize the sheer magnitude of the budget deficit, this pandemic has strained our delivery system and these proposed major cuts would have a destabilizing effect on the programs and providers serving the Medi-Cal population.

“Managing the ongoing threat of our health pandemic is heavily reliant upon access to health care, particularly for low-income Californians with serious health risks. By eliminating some essential services, this budget would inadvertently put health care at risk, drive many Californians into more costly care and, importantly, exacerbate the exposure risk of vulnerable patients.

“It is critical that the federal government steps up to support states and avoid undercutting the safety net as we face depression-era unemployment levels. Destabilizing a program that stands to serve as the sole source of health coverage for a rapidly growing portion of our state population will only compound the problem.”

About LHPC

Local Health Plans of California (LHPC) is a statewide trade association that represents all 16 of the publicly managed, not-for-profit health plans that provide access to critical and comprehensive health care services for low-income populations enrolled in California’s Medicaid program, “Medi-Cal,” in 36 out of 58 counties in the state. With over 10 million enrollees, our plans serve approximately 70 percent of all Medi-Cal managed care beneficiaries. Our member plans cover more lives than 49 other states’ entire Medicaid programs. More here.

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